Report from the US Treasury Department, what does this mean for Fintech?

After 18 months in advance, the US Department of the Treasury has published a new weekly report, where it has requested a more agile and favorable regulatory approach for innovations in the Fintech sector.

The document generally indicates an important impulse on the part of the government of the United States to promote the nascent financial technologies and also to modernize the existing regulatory frameworks in order to eliminate those obstacles that prevent the evolution.

The report, which has been dedicated to "Nonbank Financials, Fintech, and Innovation," barely makes a fleeting reference to cryptocurrencies and distributed accounting technologies (DLT) such as the Blockchain, and adds that they are being explored and studied separately in a inter-institutional effort in which the leader is a working group of the Financial Stability Supervisory Board.

However, many of the problems highlighted in it and the proposed recommendations are highly linked to the encryption industry and non-banking financial entities of all kinds.

The report proposes a set of recommendations that are aimed at rationalizing excessively complex regulations in activities such as the transfer of money and payments, causing a possible impediment to growth, basically proposing a reduction of bureaucracy and encouraging continuous experimentation, as well as advocating a "more streamlined and personalized supervision".

"Financial regulation should be modernized to more appropriately address the evolving features of financial services today and in the future," says the report, which emphasizes:

"It is important that state regulators strive for greater harmonization, including consideration of the drafting of model laws that could be adopted uniformly for financial services companies currently challenged by various licensing requirements of each state."

Due to the substantial increase in the interest of financial authorities around the world in cryptometries, the Treasury Department highlights the effort made by the G20 to establish the appropriate metrics to monitor the emerging sector.

The Department also promotes the use of regulatory arenas and encourages efforts to create laboratories, work groups, innovation offices and other channels for industry participants to interact directly with regulators.

It is important to highlight the need for a symbiotic relationship between regulators and innovators "to support the US economy. and maintain competitiveness. "